COVID-19 Vaccine & Brexit deal – Possible Buying Opportunity?
Are you planning to invest in gold? Are you wondering if it is the right time or not? Well, if we take a look at the current gold price, we will notice that it has dropped significantly in comparison to the last few months. In the United Kingdom, the current gold price per ounce is £1,397.45 while almost three months back; it was £1,531.59 per ounce.
It’s great news for people looking to invest in gold. According to the industry experts, due to the launch of Corona vaccine and Brexit deal, it is the perfect time to invest in gold. So whether you want to buy a royal mint gold sovereign coin or simply a gold bar, don’t miss out on this opportunity. Let’s find out how these two significant events of the era can impact the cost of gold and how people can leverage this opportunity.
Brexit Withdrawal Transition Period is About to End
For those who don’t know, the withdrawal of the United Kingdom from the European Union and European Atomic Energy Community is known as Brexit deal. The UK is the first and the only country to leave the EU after 47 years of membership. Although the UK had taken the withdrawal decision on 31st January 2020, the agreement is still in the transition period of 11 months which is going to end on 31st December 2020. Experts believe that the Brexit withdrawal agreement can immensely impact the pound, the gold price and ultimately the entire UK economy.
In the coming days, The British Prime Minister Boris Johnson is going to talk to the president of the European Commission, Ursula von der Leyen to overcome the financial obstacles to a Brexit deal. As per the Telegraph, the PM is planning to intrude the Brexit deal talks as both parties want to secure the deal before the deadline.
Some experts also believe that failure to secure the deal could leave the United Kingdom in the worst condition that would hurt the UK’s currency to a great extent. It wouldn’t be wrong to say that the coming months are vital for the UK. However, these risks and economic uncertainty might prove good news for gold investors. So, if you want to buy a royal mint gold sovereign, this could be the right time.
COVID-19 Vaccine Announcement
The gold price has dropped significantly since AstraZeneca; a renowned British-Swedish Multinational pharmaceutical announced that their vaccine could be around 90% effective. The company further said that by the end of 2020, they would have approximately 200 million doses.
Already, the Pfizer COVID-19 vaccine announcement is a ray of hope for millions of people across the globe. The news of these vaccines and their positive results are playing a crucial role in keeping the gold price under pressure. According to Pfizer, their COVID-19 vaccine is more than 90% effective in preventing infection.
Though more than 200 COVID-19 vaccines are being developed across the globe, only half a dozen are in phase three human clinical trials. Experts around the world are expecting a viable COVID-19 vaccine by the end of the year. Pfizer’s vaccine still needs FDA approval. However, their announcement is positive, encouraging and ensures economic stability.
The positive news of vaccine developments and results is encouraging investors to bet on a quicker global economic turnaround, pushing equities and commodities higher. If you closely analyse these two situations, you can conclude that it’s an ideal time to invest in gold. So take the opportunity before the Brexit deal date increases the price of gold.